((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Jana owns 5% of Lamb Weston and calls for strategic review
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Lamb Weston shares rise 11% after Jana stake announcement
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Jana slams Lamb Weston for ‘self-inflicted mistakes’
(Updated share price in paragraph 4 and company statement in paragraphs 6 and 7) by Svea Herbst-Bayliss
Jana Partners has taken a new position in Lamb Weston LW.N and could push the French fry maker to consider selling itself, the activist investment firm said in a regulatory filing Friday.
Jana said she owns 5 percent of the Eagle, Idaho-based company and wants a strategic review in which the company and bankers would review capital expenditures, operating deficiencies and buyout strategy. ‘actions.
The hedge fund also indicated it may seek a seat on the board of directors of the company, which has a market capitalization of $11 billion.
The announcement of Jana’s participation sent Lamb Weston shares up 11 percent to $78.78. Since January, the stock has fallen 26%.
Jana works with Continental Grain, a private company that owns and operates food and agribusiness businesses, on the investment. She also works with former Lamb Weston executive chairman Timothy McLevish. The company said it has reviewed regulatory documents filed by Jana and Continental Grain.
“We regularly engage with our shareholders to better understand and consider their views and will continue to do so,” a representative said.
This month, Lamb Weston cut its annual profit forecast and announced job cuts amid falling spending at restaurants and intensifying competition in international markets.
In her report, Jana blames Lamb Weston for its difficulties, citing a “litany of self-inflicted missteps” that led to underperformance.
As North America’s largest French fry producer, Lamb Weston sells its products, including tater puffs and hash browns, to customers such as the McDonald’s hamburger chain MCD.N .
A year ago, Jana called for Frontier Communications to sell itself, and Verizon Communications made an offer last month . At the time, the hedge fund was also working with a major strategic investor that it did not identify. Jana had previously pushed for the sale of New Relic , which was acquired by TPG and Francisco Partners last year. She also pushed for the sale of Zendesk, which was taken private in 2022 by investment firms led by Hellman & Friedman and Permira.
